Water damage accounts for nearly one-quarter of all home insurance claims. And while homeowners insurance covers water damage, it only triggers in certain cases. Insurance never covers progressive water damage or improper maintenance, and basic policies exclude coverage for floods and sewer line or sump pump backups.
Knowing when you are and aren’t covered is crucial. For complete protection, you may need to invest in a water backup add-on to your homeowners policy and separate flood insurance—especially if you live in a high-risk flood zone. You’ll also need to address minor leaks early to prevent major damage that your insurance won’t cover.
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When does homeowners insurance cover water damage?
For the most part, home insurance covers sudden and unpreventable water damage that originates within your home. However, homeowners insurance generally doesn’t cover gradual or predictable water damage. In addition, basic policies may exclude coverage for sudden water damage caused by external sources unless you purchase extra coverage.
What types of water damage are usually covered by insurance?
Let’s look at specific examples of situations where your homeowners insurance company will likely cover water damage to your property.
Burst pipes
In many cases, home insurance covers water damage from burst pipes. For example, standard policies expressly cover damage caused by sudden tearing, cracking, burning, or bulging that occurs in a water heater. That means you should be covered if any of these perils cause a pipe connected to your water heater to explode and spew a large volume of water into your home.
Frozen pipes
Standard homeowners insurance policies also cover damage that results from freezing in your plumbing system. For example, your home insurance provider may step in if some water freezes inside your plumbing pipes, expands, causes the pipes to burst, and floods your basement.
Overflowing appliances
Your home insurance policy will generally provide coverage if there’s a sudden overflow or discharge of water from any of the following household installations:
- Plumbing system
- Heating, ventilation, and air conditioning system
- Sprinkler system
- Household appliances
Keep in mind that, while home insurance typically covers damage caused by a leaking system or appliance, it may not cover damage to the system or appliance itself. For example, if your dishwasher suddenly malfunctions and floods your kitchen, your home insurance will likely pay to replace your kitchen floors, but you’ll probably have to pay for a new dishwasher out of pocket.
Storm damage leading to water intrusion
While home insurance doesn’t directly cover rain damage, it may provide coverage if rain gets into your home because of another peril that is directly covered. For example, homeowners insurance covers falling objects and windstorms—so you may be covered if a tree branch falls onto your roof or through a window and allows wind-blown rain to get into your home.
Water damage linked to other covered events
As a general rule, homeowners insurance covers sudden and unexpected water damage when it can be traced to another peril that your policy covers. For example, because home insurance covers fire damage, it may also cover water damage caused by an automatic sprinkler system or firefighters in the process of putting out a house fire.
What water damage isn’t covered?
Typically, the following types of water damage aren’t covered by homeowners insurance:
- Flooding
- Sewer backups
- Seepage and other types of gradual water damage
- Water damage stemming from neglect or poor maintenance
- Water damage from freezing pipes in properties that are vacant, lack utilities, or otherwise aren’t properly heated
That said, many insurers offer water backup coverage endorsements that can cover otherwise excluded overflows from sewers, sump pumps, septic tanks, and similar artificial water sources outside your home.
Does homeowners insurance cover different sources of water damage?
Here’s a review of how water damage insurance for homeowners differs depending on the source of the water damage to your home:
Is mold from water damage covered by home insurance?
If mold grows in or around your home due to sudden water damage that’s covered by your home insurance policy, your insurance company will likely cover the costs of cleaning up the mold and repairing or replacing any ruined property. However, mold growth triggered by progressive leaks, poor maintenance, flood damage, or extended periods of high humidity isn’t covered.
What does home insurance pay for?
What specific kinds of expenses will different parts of your homeowners insurance policy pay for in the event that you experience covered water damage? Here’s a look.
Dwelling
Dwelling insurance covers the physical structure of your home and any structures attached to it. After a covered water damage claim, your dwelling coverage may help take care of water damage cleanup costs and repairs to the following:
- Roof
- Foundation
- Ceilings
- Walls
- Floors
- Decks and porches
- Garages
- Built-in appliances
- Electrical, plumbing, HVAC
Personal property
Personal property insurance covers the belongings stored inside your home. Whenever you encounter covered water damage, your policy may pay to fix or replace items like:
- Clothes
- Electronics
- Furniture
- Home decor
- Small appliances
- Sports equipment
- Tools
Additional living expenses
If your home is temporarily uninhabitable due to covered water damage, your loss of use coverage can help you pay for additional living expenses—that is, everyday living costs while you are away from home that exceed your normal expenses. Here are some examples of additional living expenses that may be covered by your homeowners policy:
- Hotel stays
- Food
- Gasoline
- Storage costs
- Laundromat services
- Pet boarding
- Moving expenses
- Public transportation
- Parking fees
When will a home insurance company deny a water claim?
In general, a home insurance company will deny a water claim if the damage was caused by flooding, gradual dripping, or some other excluded peril. Even sudden water damage claims may be rejected if poor maintenance contributed to the damage. For example, if you know about a hole in your roof but don’t fix it, you may not be covered if that hole leads to significant water damage during a rainstorm.
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How to file a water damage claim
If water damages your home or belongings, you need to take these steps to file a claim on your homeowners insurance policy:
- Check your policy documents to confirm whether it covers the water damage your home has experienced.
- Document the damage by taking pictures and videos.
- Take steps to prevent further damage, such as laying down tarps or setting up a dehumidifier.
- Refer to your home inventory to determine what items have been damaged or destroyed—and how much they may be worth.
- Report your claim immediately, submitting relevant documentation to your insurance company and scheduling an appointment with an insurance adjuster.
- Consider your policy’s home insurance deductible and coverage limits to get an idea of what to expect from your insurance settlement.
- Keep up with the status of your claim so you can ask questions or fill out paperwork as soon as possible when needed.
- If your claim is approved, use the payout to help cover the cost of repairs.
Tips for preventing water damage at home
Since certain types of water damage aren’t covered by home insurance—and those that are covered may lead to increased premiums when you file a claim—you should be proactively preventing water damage in the first place. Below are some steps you can take to limit your exposure to severe water damage:
- Familiarize yourself with how your plumbing system works.
- Keep an eye out for above-average water pressure or sudden spikes in your monthly water bills.
- Be prepared to shut off your main water valve in case of an emergency.
- Invest in smart home devices that can detect leaks and automatically turn off your water supply.
- Periodically check your pipes for rust, mineral buildup, corrosion, or other signs of wear and tear.
- Don’t run appliances that use water if you’re asleep or out of the house.
- Shut off your water supply and drain your pipes before you go on vacation.
- Clean your gutters, and make sure they’re draining properly.
- Inspect the caulking around the fixtures in your home with regular exposure to water, such as showers, sinks, and toilets.
- Ensure your yard is properly graded and there aren’t any signs of seepage in your basement after a heavy rainstorm.
Homeowners insurance and water damage at a glance
- Home insurance covers most types of sudden water damage that originate inside your home, including damage from frozen or burst pipes and overflowing appliances.
- Most homeowners insurance policies also cover water damage if it can be linked to another covered peril—such as water used to put out a fire or rain that gets into your home because of damage from wind, hail, or a falling object.
- Flooding isn’t covered by standard home insurance policies, but you may be able to obtain separate flood insurance through the National Flood Insurance Program or the private market.
- Other external sources of water damage to your home—like sewer backups and sump pump overflows—aren’t covered unless you purchase extra coverage for your homeowners insurance policy.
- Homeowners insurance doesn’t cover gradual water damage or water damage that could have been easily prevented through proper maintenance.
- Progressive mold damage isn’t covered by home insurance, but mold growth may be covered if it’s caused by a sudden instance of covered water damage.
- To prevent potentially costly home insurance water damage claims, you need to make sure your pipes are in good condition, look for signs of leaks, turn your water off when you’re away from home, and verify that your gutters are draining water correctly.
The takeaway
Not all types of water damage are covered by a standard home insurance policy. To get comprehensive protection against various kinds of water damage, you may need a combination of homeowners insurance, flood insurance, and water backup coverage.
Different insurance companies may offer you different premiums for the same level of coverage, so shop around to find the best possible deal on the right policy for your home.
Frequently asked questions
Does home insurance cover water damage from burst pipes?
Yes, home insurance generally covers water damage from plumbing pipes and other home systems that suddenly burst or overflow.
Does home insurance cover flooding damage?
No, homeowners insurance doesn’t cover flooding damage—but you can add flood insurance to better cover yourself.
Is a leaking roof covered by homeowners insurance?
Home insurance may cover sudden water damage to your roof in certain cases, but it generally doesn’t cover roof damage stemming from gradual leaking or poor maintenance.
What should I do if I find water damage in my home?
If you find water damage in your home, you first need to take steps to keep yourself safe. Turn off the electricity in affected areas and the water supply, and check whether the structural integrity of your home has been negatively affected. Then document the damage for your insurance claim and begin removing standing water as best you can.
Should I file an insurance claim for water damage?
You can generally file an insurance claim for water damage caused by overflowing appliances, burst pipes, attempts to put out a fire, or windstorms. However, your basic homeowners policy won’t cover flooding, sewer backups, or progressive water damage.